Australian Dairy Farmgate: Suppliers say step ups not enough
Source: dairynews.today
Australian Dairy Farmers president Ben Bennett highlights dissatisfaction among suppliers regarding the current step ups in farmgate prices, calling them insufficient amidst improved market conditions.
Australian dairy farmers are expressing dissatisfaction over the recent increments in farmgate milk prices, arguing that the adjustments fall short of reflecting the current market conditions. Ben Bennett, president of Australian Dairy Farmers, criticized the recent round of step ups, stating they "did not come close to acknowledging improved market conditions."
The unrest has been fueled by a grassroots revolt among dairy farmers who view these price increases as inadequate. Notably, While nearly all processors, including Lactalis and Burra Foods, have announced step ups, the increment fails to meet the expectations of farmers, with a mere 2% rise in farmgate prices contrasting sharply with a 20% rise in the Global Dairy Trade index this financial year.
Farmers like Gippsland's Bernhard Lubitz have highlighted the disparity, stressing that the cost of production has reached approximately $9 per kilo of milk solids, yet the prices being offered are significantly lower, leading to growing frustration within the community. The situation is compounded by the drop in the Australian dollar against the US currency, which has further challenged the competitiveness of domestic processors.
Furthermore, proponents like Mount Gambier's Will Seidel question when farmers will receive fair compensation, calling into question the sustainability of current practices that inadequately pass on the benefits of rising commodity prices to producers.
Bennett encapsulated the prevailing sentiment by saying, "If they think these price changes are step ups then they’ll have farmers stepping out of the dairy industry."
The unrest has been fueled by a grassroots revolt among dairy farmers who view these price increases as inadequate. Notably, While nearly all processors, including Lactalis and Burra Foods, have announced step ups, the increment fails to meet the expectations of farmers, with a mere 2% rise in farmgate prices contrasting sharply with a 20% rise in the Global Dairy Trade index this financial year.
Farmers like Gippsland's Bernhard Lubitz have highlighted the disparity, stressing that the cost of production has reached approximately $9 per kilo of milk solids, yet the prices being offered are significantly lower, leading to growing frustration within the community. The situation is compounded by the drop in the Australian dollar against the US currency, which has further challenged the competitiveness of domestic processors.
Furthermore, proponents like Mount Gambier's Will Seidel question when farmers will receive fair compensation, calling into question the sustainability of current practices that inadequately pass on the benefits of rising commodity prices to producers.
Bennett encapsulated the prevailing sentiment by saying, "If they think these price changes are step ups then they’ll have farmers stepping out of the dairy industry."
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